RES 94132A - Laserfiche WebLink

appropriation limit when the funds are expended in a future fiscal year. Although not an funds have revenues which are subject to the appropriations limit, it is still advisable to fully appropriate all fund balances of the operating, internal service, capital, special revenue, enterprise and expendable trust funds. Therefore, staff recommends that Council fully appropriate an such balances to contingency reserves. CONCLUSION The fmancial policies adopted by Council in 1990 continue to provide a framework for prudent fiscal management, which has been beneficial to the City during the last few recessionary years. Throughout this time period, the City has continued to maintain its 10% Reserve for Economic Uncertainties in the General Fund. Despite a loss of $5 million over the last four years as the result of State revenue reallocations, the City has ended each year with a balanced budget, without drawing on reserves. A special, temporary Recession Reserve has been established and maintained as a safeguard against potential further State recessionary impacts or revenue restructuring. However, balancing the budget has not necessarily been an easy task. City staff in all departments have worked hard to find more efficient ways to provide services at lower costs in a very cooperative effort. At years end, 17 positions were still temporarily unftlled, while others had been eliminated. Through attrition, reorganization, consolidation and streamlining, 15 positions have been eliminated since 1990-91 through the fIrst few months of 1994-95. To begin meeting the challenge of providing for future replacement as the City ages, we have established funding mechanisms to provide for replacement of equipment, vehicles, water and sewer infrastructure, and major facility maintenance. Although the replacement reserves established are not yet fully funded, we have begun to recognize that replacement is an ongoing cost of doing business, and have started to phase replacement funding into the budget plan. A Master Facilities Plan for the City was completed in 1990. This Plan has since been incorporated into the CIP each year. Currently it is being incorporated into the development fee study that is almost complete. The City Council, staff and the development community continue to look at alternatives for fmancing new parks and facilities. As part of the future budget process, the City must also recognize the need to utilize at least some General Fund moneys on an ongoing basis for capital projects. The challenge in the next few years continues to be the same -- maintaining or expanding service levels with limited and sometimes unpredictable resources. In addition, the City must identify the resources necessary to fund additional and replacement facilities as we approach buildout and into the future. SR 94:365 15